"Fried Shoes" Become Tulips Foam Lining But Sword Goes Sideways.

"After 70 stocks, 80 after the real estate, 90 after speculation, 00 after fried shoes", this sentence in the recent explosion network, the reason behind it is fried shoes this alternative speculation mode has become some people, especially young people for profit channels.

Since the phenomenon of "fried shoes" has been heated up by all circles, the public opinion has shown a one-sided attitude to support "shoes not to be framed". Even people in financial circles compare "fried shoes" to tulips foam, and think that shoes fired at high prices are purely speculative commodities.

If the market takes advantage of the scarcity of limited footwear, malicious speculation can lead to price deviating from its value and even the appearance of false shoes. However, from the perspective of shoe companies, it takes more than ten years, decades or even more time to build brand with broad brand awareness and reputation. If the product of a shoe company can be hyped by the market, to a certain extent, it shows that the market highly agrees with the product of this company.

The current reality is that the market for fried shoes is almost monopolized by well-known foreign brands. Take sports shoes as an example. Adidas's Yeezy series and Nike's series are the mainstream products in the market. According to statistics, in 2018, AirJordan accounted for 44% of the market share in the two class market for shoes, Nike accounted for 26% of the other brands, and Adidas accounted for 24% of its products.

This means that China's domestic sports shoes brand still has a long way to go in brand building. In this process, different companies have different ways. Most of them are committed to developing multi brand strategy through mergers and acquisitions. The most typical ones are Anta (02020) and XTEP (01368).

As the "second in command" of the domestic sporting goods industry, Lining took the lead and began to shrink many brands, and implemented the strategy of "single brand, multi category and multi-channel". Not only that, Lining, founder of the sports industry, also had the intention to retire to the second line and restart the way of professional managers.

　 The road of Lining's professional manager is bumpy.

APP understands that in September 2nd, Lining announced that Lining was formerly the acting chief executive officer of the company. He was transferred to be the joint chief executive officer of the company. His work will focus on the overall control and strategic planning of the company and its Affiliated Companies, and continue to lead the company's operation and development with the management team. In addition, Takasaka Takeshi has been appointed as executive director and chief executive officer of the company. Its focus will be on group operation.

Judging by the stock price trend after Lining's announcement, the market is obviously unprepared for Lining's decision.

After all, in the past four and a half years, Lining's revenue has gone through a historical breakthrough of 10 billion yuan, and profits have been losing for three consecutive years to maintain profitability. Lining has done a great job.

In Lining's view, it is the most appropriate choice for Li Ning Co to take the path of professional manager. 12 years ago, he said in an interview, "my ability is limited, so I need to build a strong organization to lead and run the enterprise. I have been working on the company and don't confuse Lining with Li Ning Co, because I like freedom very much, and I am very self-conscious. I'm very happy that one day many children bought Lining cards, but they didn't know me. That's what I needed. Because they are pursuing brands and products, and you meet their needs, which is in line with business.

Whether Chen Yihong was handed over to the company in 1998 when the company was running smoothly, or in the 3 years of difficulty, Kim Chun Chun was in danger. Lining had always believed that the company must operate and manage the manager.

Looking back from 1998 to 2014, 16 years of management by professional managers, Lining's development was "mixed with joy and sorrow".

In 1991, Chen Yihong resigned from the top ten sports shoes company of the National Sports Commission and joined Lining as the deputy general manager, general manager and chief executive officer of Lining sporting goods Co., Ltd. Until Lining was listed in Hongkong, he served as executive director of the company.

In 2001, Chen Yihong resigned from the Li Ning Co because of disagreement. A year later, Chen Yihong returned and began to form Li Ning Co's Affiliated Companies in Beijing, Beijing.

In 2005, the trend of Beijing was established. Its main business was to represent Italy sportswear brand Kappa, and obtained the exclusive franchise of Kappa in the mainland of China and Macao. At this time, Chen Yihong holds 20% of Beijing's trend and Li Ning Co holds 80% of Beijing's trend. Due to the extrusion of sports brands at home and abroad, the sale of Kappa has not been ideal. For the sake of risk prevention and strategic adjustment, Li Ning Co finally decided to abandon Beijing's trend and sell its 80% stake to Chen Yihong. Since then, the trend of Beijing has been renamed the trend of China. The 15 year relationship between Chen Yihong and Li Ning Co has come to an end.

About Chen Yihong's departure, Lining said in a media interview in 2007 that a veteran entrepreneur needs to leave. It's not that he has a hindrance. Sitting alone in a seat for too long is not good for this position. The second, first growth firms themselves need continuous changes, and constantly introduce new talents that are more capable of meeting the stage of development. This is like a child, at what age, what to eat and what to do.

The burden of change in Lining's mouth fell to the second professional manager, Zhang Zhiyong. APP understands that Zhang Zhiyong joined Lining as a cashier in 1992 and took only seven years to sit on the position of chief financial officer.

After entering the core management team, Zhang Zhiyong's reform speed to Lining is also shocking. Chen Yihong temporarily left in 2001, Zhang Zhiyong served as general manager, but also this year Zhang Zhiyong took a bold channel expansion policy.

In 2003, the establishment of "Lining, everything is possible" brand positioning for only a year, Lining's sales exceeded 1 billion yuan mark. A year later, Lining successfully landed at the Hong Kong stock exchange. Zhang Zhiyong took the helm of Chen Yihong and became the chief executive officer and executive director of Li Ning Co. He was responsible for the overall strategy of the group. After that year, Lining entered the honeymoon period in Zhang Zhiyong era.

It can be said that Zhang Zhiyong is Lining's Xiao He, but "Cheng also Xiao He, defeated Xiao He."

In 2010, Zhang Zhiyong led the international transformation of Lining, replacing the slogan "anything is possible" to the "MakeTheChange".

Lining is no longer satisfied with being the first sports brand in China. It has opened up shop in a second tier city, facing Nike and Adi, and the product has increased its price two times in one year, forcing the product to be high-end.

As a result, it has long been known that in 2011, Lining earned 8 billion 929 million yuan in the whole year, which was still the first sports brand in China, but net profit began to bottom in the head brand.

In 2012, Lining's performance declined, with a huge loss of 1 billion 955 million yuan, which closed 1821 stores in that year. As of 2014, Lining had accumulated more than 3 billion yuan in the "three years' difficult period".

Lining's declining performance, even the Korean American Jin Zhenjun, who helped Daphne to tide over the difficulties in 2009, failed to change.

According to Zhitong finance and economics APP, after Zhang Zhiyong submitted his resignation in 2012, Jin Zhenjun immediately took office and began to reform Lining's channels and management.

As of 2014, the number of Lining outlets increased from 631 in 2012 to 1202, with a cumulative growth rate of 90%, while the number of distribution channels decreased from 8255 to 5626 during the same period. Lining repositioned the brand positioning to the mid end market with high price performance ratio and accounted for more than 30% of the market share in the middle end market. At the same time, it will concentrate on five major businesses to enhance the professionalization of Lining's image. In order to improve the retail capacity and inventory management efficiency, Lining has adopted an innovative supply mode and established a rapid response retail business platform. Lining has optimized the ordering, replenishment and inventory allocation system, and has forecast the demand according to the daily sales situation of retail stores, rationally allocated the inventory, and adjusted the product development direction and output of the supply chain.

Jin Zhenjun's efforts have never been able to turn the tide. In November 2014, Lining confirmed that Jin Zhenjun would retire as the acting chief executive officer, and Lining himself replayed the "handsome print".

　 Is Takasaka Takeshi Lining's "Mousika"?

If Lining has experienced three years of loss, the main reasons are the extensive distribution channels, the shortcomings of the distribution outlets, the lack of retail management and the excessive anticipation of the sports brand market. In the 4 years after Lining's reappointment and the three years of Takasaka Takeshi's co CEO, the channel change will still be the focus of Lining's daily operation.

Takasaka Takeshi's resume shows that he is a Chinese from Japan and graduated from Kansai University of Japan. 1996 joined the fast selling group (06288), and served as Vice General Manager / chief operating officer, UNIQLO Taiwan chief operating officer in UNIQLO, and precipitated more than 15 years of experience in China's market development and management.

In 2001, Takasaka Takeshi was appointed permanent representative of Guangzhou, responsible for factory management. Subsequently transferred to Shanghai, as deputy general manager of China UNIQLO, responsible for the development of the Chinese market. During his job in UNIQLO, Takasaka Takeshi worked in various aspects such as supply chain, product and sales and retail management. Takasaka Takeshi's work experience is believed to be thirsty for Lining seeking change.

In fact, in recent years, Lining has never stopped upgrading the channel structure and channel sales.

First of all, in the classification of stores, Lining categorization of stores, divided the store into comprehensive stores and category stores, providing flexible purchase experience according to category attributes.

Secondly, to strengthen the support and control of dealers, as of the first half of 2019, the number of Lining dealers was 62. Through the shaping and management of core distributors, the company grasped the information feedback of distribution channels, and made reference for other distributors.

In addition, in terms of channel structure optimization, Lining has gradually liberalized franchises in recent years by closing down the loss shops, transforming inefficient shops, promoting shop location optimization and expanding the rectification. As of the first half of 2019, the number of franchised dealer stores reached 5043, accounting for nearly 70%, while the number of self operated stores dropped to 1379, accounting for less than 2.

Although the franchisee's store efficiency is no match for its own stores, the improvement of channel structure has effectively controlled the distribution expenses of Lining. As of the first half of 2019, the proportion of the company's distribution expenditure fell to 32.34%, the lowest level since Lining rejoined the company.

According to the first half of 2019 earnings report, Lining's overall retail sales reached 20% to 30% low segment growth. The channel sales ratio continued to improve, and the same store sales grew 10% to 20%, while the retail sales of new lines increased from 10% to 20%.

It is worth mentioning that with the further development of Lining online sales channels, the company improves the online and offline integrated operation mode, bringing consumers the full channel shopping experience. The proportion of electricity supplier income and income increased year by year, and in the middle of 2019, the proportion of electricity supplier income reached 21.7%.

Over the past few years, Lining's change in the channel is worth looking at. But from a financial perspective, Lining accounts for more than 30% of the total distribution expenses, which is higher than Anta, XTEP and 31st degree (01361).

Fortunately, UNIQLO, as the head brand of fast fashion, is famous for its high efficiency, and has obvious advantages in store image design and standard operation. Takasaka Takeshi's arrival should help Lining improve.

Of course, as a veteran of 23 years in UNIQLO, Takasaka Takeshi will be very familiar with the trend culture and tide brand, because UNIQLO is very mature in joint name and explosion. UNIQLO recently launched KAWS, weekly youth Jump and so on. If they are listed, they will trigger a buyer's market.

Correspondingly, in addition to focusing on product professional sports attributes, Lining also began to explore the combination of sports and fashion, entertainment and leisure. The company increases investment in technology, design, research and development in five core categories: basketball, running, training, badminton and sports fashion, and continuously strengthens the professional sports image.

Among them, the company's basketball shoes focus on the star style, launched the All-Star Fanpack series of sweater, get the consumer recognition, runners, training, badminton and other categories to enhance product functionality, launched more light years, personalized products.

Marketing, Lining division around the five core categories to deepen the marketing layout, attracting young consumer groups. The company continues to sponsor high-quality marketing resources such as CBA professional league matches and NBA stars, maintaining brand exposure at professional top level events, sponsoring marathon athletes and helping them win medals in many competitions. The company has launched a joint series with people's daily, Disney, CONCEPTS, electric club EDG and so on, expanding its brand influence with fans effect.

To sum up, Takasaka Takeshi may not be the last professional manager of Lining, but it may be the professional manager who is most suitable for Lining's development strategy. Lining in the post Lining era is worth looking forward to.